Citrus Company Facing Inquiry

Grand Jury Seeks Missing Millions

August 1, 2003|By Melissa E. Holsman Stuart News

Palm City — A federal grand jury is investigating what happened to millions of dollars invested in a Palm City-based company that helped open China for Florida citrus, then collapsed amid allegations that investors were misled.

Rizzuti said the company has turned over all documents requested by prosecutors.

Rizzuti said he had not been called to testify before the grand jury.

In 1997, Rizzuti and Clements started the citrus-export company and became driving forces in building trade relationships with Chinese government officials and businessmen, including hosting Chinese visits to the Stuart area.

By 2000, the company was shipping 1 million pounds of grapefruit to China, and building a business for exporting frozen concentrated orange juice there.

In September 2000, Golden Phoenix stock began trading on the over-the counter market.

By the time Clements was ousted in April 2001, financial Web sites reported more than $10 million had been raised from investors -- yet the company projected more than $2 million in losses that year.

"Where has all the money gone? That's the question we've been asking," Clements said at the time, as he went to the SEC.

Gordon Hunt, former director of international marketing for the Florida Department of Citrus, and a former board member of Clements' company, said he specifically was asked questions about the investor money.

"They raised money and it went somewhere. I have no idea where it went," said Hunt, who resigned from the board in April 2001 because he said he had concerns about how the investor funds might be used.

The company in April changed its name to Atlas Resources International Inc., also located in Palm City, with Rizzuti as the only officer.